Home Health Business Quarterly: Financial Results
American Retirement Corp. of Nashville, TN, reported second-quarter revenue of $82.6 million, an increase of 27% over last year’s second quarter. Community net operating income was $22.1 million, compared with $18.8 million in the second quarter of 2001. EBITDAR (earnings before interest, taxes, depreciation, amortization, and rent) was $15.9 million, compared with $13 million for the corresponding 2001 period.
The company reported a loss of $19.4 million or $1.12 per share, compared with a loss of $4.6 million or 27 cents per share for the same 2001 period.
The company said noncash charges related to its refinancing plan contributed to quarterly losses, which included $7.1 million of additional lease expense and $2.3 million of accelerated leasehold amortization expenses.
Under the refinancing plan, the company has entered several transactions involving nine communities since March 2002.
These transactions raised gross proceeds of approximately $170 million, of which $151 million was used to pay debt associated with the properties. Of that $151 million debt repayment, approximately $123 million had maturity dates during 2002.
American Retirement currently operates 65 senior living communities in 14 states, with an aggregate resident capacity of 14,400.
ARV Assisted Living Inc. of Costa Mesa, CA, announced second-quarter net income of $200,000 or 1 cent per share on total revenue of $39.7 million, compared with net income of $800,000 or 5 cents per share on total revenue of $35.9 million for the 2001 quarter.
Excluding a $1.6 million one-time gain in the second quarter last year, the company said 2002’s second-quarter results represent a $1 million or 6-cent-per-share improvement. The revenue increase reflects the acquisition of two assisted living communities in December 2001.
For the six-month period, total revenue was $79.5 million, compared with $71.3 million for the same period last year. Applying Statement of Financial Accounting Standards No. 142, which halts the amortization of goodwill, net income for the six-month period would have been $2.8 million or 15 cents per share.
ARV operates 59 assisted living communities with about 7,000 units in 11 states.
Emeritus Assisted Living of Seattle, announced second-quarter revenue of $34 million, compared with $35.2 million for the second quarter of 2001. Net loss to common shareholders was $5.7 million, compared with a $3 million loss for last year’s quarter.
The decrease in revenue reflects a deferral of $1.8 million related to resident move-in fees. Without it, the company said, revenue increased $600,000, and net loss to common shareholders was $3.9 million, compared with $3 million for the second quarter of 2001.
For the first six months, the company reported revenue of $70.2 million, compared with $70 million for the 2001 period. Net losses were $9 million, compared with $6.8 million in the comparable period.
In the second quarter, the company began managing eight facilities in Texas and Louisiana, previously operated by Horizon Bay Management, and it announced plans to lease 24 communities from a private entity that will buy them from Marriott International Inc. subsidiaries.
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